Etihad Airways PSJC, which owns 24 percent stake in Jet Airways(India) Ltd, has set up conditions before it invests another amount in the cash-strapped airline. The Etihad board of directors will take charge approval and fusion of the funds as well.
Jet Privilege Pvt. limited, a lifeline for the beleaguered airline, of which 15 percent total shares have been pledged to HSBC as a 150 million dollar loan, will have to be made available to jet airways, as per the MoU for the Jet-Etihad deal. The completion of Rs 4,000 crores interim financing, which was agreed by all the concerning parties, has been sought after by Etihad Airways.
The document said, “As part of the interim financing, lenders shall infuse Rs. 750 crore into the company. Etihad will procure funding for the company, either itself or from an offshore or onshore lender, for an amount equivalent to the lender’s financing, i.e., Rs. 750 crore, as soon as reasonably possible.”